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If VW defaults on loans it may sell Bentley or Lamborghini

If something goes catastrophically wrong with Volkswagen Group's recent $21 billion loan, brands like Bentley or Lamborghini could hit the auction block. According to two insiders to Reuters, the beleaguered German automaker agrees with its creditors to sell assets if the company somehow can't pay back the debt in a year. One of these anonymous people claimed the company hasn't yet deliberated over what to sell. However, the sources were willing to speculate that the power engineering portion of Man could be among the first to go. "Volkswagen may also consider divesting luxury car brands Bentley and Lamborghini or motor bike brand Ducati, although these units don't really move the needle," an insider said to Reuters. VW Group negotiated with the banks earlier this week to get the massive loan. The cash is necessary as a buffer in case the automaker doesn't have enough money on hand to repair vehicles or settle upcoming fines. VW would reportedly issue bonds in the spring to begin paying the debt. The company's bills will start racking up quickly in the new year. German authorities mandate a recall there in early 2016, and repair campaigns in the US for the 2.0- and 3.0-liter diesel engines are inevitable. There are also hundreds of class-action lawsuits to settle. The company needs to resolve its CO2 emissions scandal in Europe, too. In response to these financial threats, VW management created a cost-cutting plan to slash the research and development budget by $1.1 billion next year.

Bentley's 1,000th Mulliner project is a one-off purple Bentayga

Bentley's Mulliner division completed its 1,000th project in July 2021, and the milestone car is one you can't miss unless you park it in a lavender field. It's a one-off Bentayga painted purple and fitted with special interior accents. It took seven years for Mulliner to reach this milestone; it formed its own design team in 2014. It designed the sweet potato-colored Bentayga for an anonymous client in Europe who worked closely with the division to create a one-of-a-kind SUV. Look beyond the exterior (or try, at least), and you'll see the cabin features Olive Ash wood trim, which is normally found in the now-retired Mulsanne, plus twin-stitching on the seats and on the door panels. Mulliner's work extends far beyond unusual paint colors and new stitching patterns. Its first project was bringing a limited-edition model named Flying Spur Serenity to life. The sedan received redesigned seats, among other features. It also developed stone veneers for some of Bentley's cars, a variant of the Mulsanne Speed named Blue Train that honors Bentley's racing heritage, a Mulsanne-based six-seater limousine, and the Bacalar roadster, which is limited to 12 examples worldwide. It's based on the Continental GT, but the two models share no body panels. It has also applied its expertise to a handful of unusual projects. For example, Mulliner sometimes helps design the liveries worn by Bentley's GT3 race cars. It fine-tuned details on the 1929 Team Blower continuation car, and its resume also includes creating scale models, sculptures, plus picnic baskets complete with silverware and glasses. Related Video:

VW makes $23K on every Porsche sold, more than Bentley or Lamborghini

It's a good time to be in the luxury car business. In Volkswagen Group's financial report for the 2013 fiscal year, it is revealed that that Porsche enjoyed an operating margin of 18 percent. That means the Stuttgart brand made on average about $23,200 per car sold, according to BusinessWeek. Bentley wasn't far behind, and Audi (which was combined with Lamborghini) posted a 10.1 percent margin. This compares to only around 2.9 percent for the Volkswagen brand.
"Luxury brands are on fire," said Dave Sullivan, an industry analyst at AutoPacific. He said that the average profit margin is between six and eight percent. Brands like Porsche and Bentley have the benefit of competing in rarefied markets. Buyers looking at one their vehicles have fewer models to shop against and don't care as much about price. They can also charge more for options, which further boosts income, according to BusinessWeek.
In a way, we should be more impressed by the continued success from Audi. Its models generally have direct competitors in every segment from the other premium automakers. Plus, their buyers aren't the captains of industry who are shopping for a Bentley. Still, the Four Rings is leading rivals in sales so far this year.